As Hive pumped 30% this week many members of the Hive Community are celebrating what they see as price moving towards value.
As part of my reflection on this pump I remember one of the most important reasons I invest in Hive and other tokens like Leo; they are performing assets.
In general, assets are things which you buy, which have a history of not only holding their value, but they increase in value.
Performing assets, in contrast to assets, not only increase in value over time, but they also earn money.
This characteristic of Performing Assets makes them particularly valuable.
And in many financial books this characteristic makes them an investment versus a gamble .
Hive is a performing asset
Hive and other cryptocurrencies are purchased by investors who think they are assets, as in the investors hope their price goes up.
These are assets because when you sell them you make a profit, usually in the form of money.
There is a separate group of assets which not only appreciate in value, so you make money when you sell them, but they also earn money while you hold them.
This second group of assets are called performing assets and the first group of assets are called non—performing assets .
This is not meant to be a criticism of non-performing assets.
Diamonds are non-performing assets, gold is a non-performing asset, Bitcoin is a non-performing asset.
This is simply a statement of categorization of assets.
While most cryptocurrencies are non-performing assets, which increase in value, a few of them appreciate in value, and make money.
Hive is one of those cryptocurrencies.
Hive is a performing asset.
This fact differentiates Hive from other cryptocurrencies, which only make money for you if their price goes up and you sell them. Hive allows you to make money while you hold it.
Hive could be thought of as an evolutionary step forward from other cryptocurrencies.
When we compare Hive to other cryptocurrency assets, Hive appears to have evolved or developed traits other cryptocurrencies don’t have, and I think those traits give Hive an advantage for Hive investors.
This is the essence of evolution, developing new traits, which enhance your ability to survive and procreate.
When we look at the vast number of cryptocurrencies which have been born, lived and died, the innate volatility of cryptocurrencies, the extreme bear and bull markets, and the predators like scams, rug pulls and hacks, all of which kill cryptocurrencies and their communities because the cryptocurrency goes to zero.
Hive is a performing asset that makes money, which provides money to offset or reduce the potential loss of money invested in Hive due to the intrinsic volatility of cryptocurrency.
while investors whose asset drops 60% during a bear market can only get back to a profitable position buy holding the asset until the price goes back up. Or buy more at a lower price to over time get back to a neutral no loss position, and requires more capitol. That’s called Dollar Cost Averaging .
But Hive as a performing asset, earns money in the form of more Hive. Which is a form of free capitol, increasing your number of Hive and reducing your loss, potentially back to a neutral position, but for free. No new capitol or money is needed.
This is huge.
Hive allows you to earn money during the bull market, and replaces your losses during the bear market.
Hive provides good income during bull markets, in the form of Hive profits you can sell for fiat.
Plus Hive provides addition Hive during bear market, which partially or completely offsets any monetary losses from falling prices during a bear market.
